Exchange-Rate-Based Stabilization: A Critical Look at the Stylized Facts
AbstractTo address this question, this paper identifies stabilization episodes using criteria that differ from those in previous empirical studies of exchange-rate-based stabilizations. We find that, while some differences can be detected between exchange-rate-based stabilizations and stabilizations where the exchange rate is not the anchor, the behavior of important variables does not appear to differ - especially output growth, which is good in both cases. There is also no evidence that fiscal discipline is enhanced by adopting an exchange rate anchor, or that there are any systematic differences in the success records of stabilizations that use the exchange rate as a nominal anchor and those that do not. Copyright 2001, International Monetary Fund
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Bibliographic InfoArticle provided by Palgrave Macmillan in its journal IMF Staff Papers.
Volume (Year): 48 (2001)
Issue (Month): 1 ()
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Other versions of this item:
- A. Javier Hamann, 1999. "Exchange-Rate-Based Stabilization - ACritical Look at the Stylized Facts," IMF Working Papers 99/132, International Monetary Fund.
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
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